Correlation Between J Resources and Akr Corporindo
Can any of the company-specific risk be diversified away by investing in both J Resources and Akr Corporindo at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining J Resources and Akr Corporindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J Resources Asia and Akr Corporindo Tbk, you can compare the effects of market volatilities on J Resources and Akr Corporindo and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in J Resources with a short position of Akr Corporindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Resources and Akr Corporindo.
Diversification Opportunities for J Resources and Akr Corporindo
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PSAB and Akr is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding J Resources Asia and Akr Corporindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akr Corporindo Tbk and J Resources is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on J Resources Asia are associated (or correlated) with Akr Corporindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akr Corporindo Tbk has no effect on the direction of J Resources i.e., J Resources and Akr Corporindo go up and down completely randomly.
Pair Corralation between J Resources and Akr Corporindo
Assuming the 90 days trading horizon J Resources Asia is expected to generate 1.13 times more return on investment than Akr Corporindo. However, J Resources is 1.13 times more volatile than Akr Corporindo Tbk. It trades about -0.01 of its potential returns per unit of risk. Akr Corporindo Tbk is currently generating about -0.12 per unit of risk. If you would invest 30,600 in J Resources Asia on September 4, 2024 and sell it today you would lose (400.00) from holding J Resources Asia or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
J Resources Asia vs. Akr Corporindo Tbk
Performance |
| Timeline |
| J Resources Asia |
| Akr Corporindo Tbk |
J Resources and Akr Corporindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Resources and Akr Corporindo
The main advantage of trading using opposite J Resources and Akr Corporindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Resources position performs unexpectedly, Akr Corporindo can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Akr Corporindo will offset losses from the drop in Akr Corporindo's long position.| J Resources vs. Timah Persero Tbk | J Resources vs. Semen Indonesia Persero | J Resources vs. Mitra Pinasthika Mustika | J Resources vs. Jakarta Int Hotels |
| Akr Corporindo vs. Charoen Pokphand Indonesia | Akr Corporindo vs. Indocement Tunggal Prakarsa | Akr Corporindo vs. Bumi Serpong Damai | Akr Corporindo vs. Jasa Marga Tbk |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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